Although still limited to users in the U.S. and Japan, participants in the Technical Preview are able to access the web versions of the Office programs through Windows Live SkyDrive, Microsoft's online cloud storage service and a part of their Windows Live suite of tools and services.

SkyDrive, which provides each user with 25 GB of online storage, is used to host the documents created using the Office Web Applications. For now, the service is entirely free. However, during our earlier interview with Takeshi Numoto, the corporate vice president of the Microsoft Office Product Management Group, we questioned him about future monetization plans for the online suite. He wouldn't confirm any details, only saying that Microsoft was "experimenting" with several options. To date, nothing has changed on that front.

At the moment, the Technical Preview is not offering full access to all the Office programs - only Word, Excel and PowerPoint are currently available. There is a placeholder for OneNote, but it displays a message reading "Still to come..." when clicked. We're told that OneNote support is due later this fall. That should be relatively soon, considering that it's already October.

The web version of Microsoft Word is also incomplete at this time, allowing you to view files but not create or edit them. Only Excel and PowerPoint allow for both read and write access at the moment.

According to Microsoft, the Technical Preview program is designed solely for the purpose of collecting user feedback prior to the broader beta release of the service. No date has been given for the beta launch as of yet but the online suite is due to ship next year alongside Office 2010, the next version of the company's desktop software suite.

How to Join

If you're interested in signing up for the Technical Preview, you'll need to establish a Windows Live ID if you have yet to do so. Hotmail and Windows Live Mail users should already have one - it's your @hotmail.com or @live.com email address. You can then sign up for the Technical Preview program via this link. As noted above, you will need to select either the United States or Japan during signup, as those are the only two countries supported at this time. After completing the sign up process and accepting the license agreement, your Windows Live ID will have access to the Web Applications by way of SkyDrive.

We got a chance to talk to Takeshi Numoto, the corporate vice president of the Microsoft Office Product Management Group, last week. He gave us more information about the Office Web applications. The web-based applications were designed to work on any browser and should even work on most mobile browsers. While some functions will only be available when Microsoft's Silverlight is available on a machine, Silverlight is not a requirement to run most features of the web applications. Numoto stressed that the apps will run on Firefox, Safari, and, obviously, IE, though Google's Chrome is suspiciously absent from this list (Stephen Elop, the head of the Office division explains why at the end of this interview).

The web applications will be tied in closely with the desktop clients, and the online storage will be managed through SkyDrive. For consumers, the web apps will be hosted on Windows Live and will be available for free, although Numoto remained tight-lipped about possible plans to monetize the apps through advertising. We could only get him to acknowledge that Microsoft was indeed 'experimenting' with various options, which we can only assume includes advertising.

Real-Time Collaboration

Another important aspect, which also ties in with a feature that Microsoft is stressing in the desktop applications of the Office suite, is the ability to collaborate on any document with various users simultaneously - including those using the web applications. While we haven't seen this in action, having a rich-text editor at hand for real-time collaboration on Word and PowerPoint documents is going to be a very exciting feature for a lot of users (however some third-party service providers who currently offer similar services will probably not be happy about this).

Enterprise: Office Web Behind the Firewall

For enterprises, Microsoft will offer two solutions. One will be hosted as part of Microsoft's Online Services. Another version, however, will be available for companies to host on their own servers on top of SharePoint. For enterprises, especially those that have long felt that cloud computing wasn't for them, this self-hosted version of the browser-based Office suite is going to be a very attractive solution, especially considering that all of Microsoft's 90 million Office annuity customers will get access to this version as a regular part of the updates that come with these volume licenses.

As Numoto told us, Microsoft believes that this will allow the company to differentiate itself from other companies that offer office solutions in the cloud. While Takeshi was careful not to mention any competitors by name, it is obvious that this is aimed at Google (and perhaps less so, startups like Zoho and ThinkFree).

Clearly, this release will be a major deal for consumers and enterprises. A free version of the browser-based Office application that easily syncs with the desktop version and allows collaboration between users on both systems is going to be a big deal.

What About the Desktop?

The desktop apps obviously also got a make-over. But compared to the shift to Office 2007, the current release features only minor cosmetic updates from what we have seen so far. The integration of the web apps looks like the most exciting addition, as well as the ribbon interface becoming standard across all the applications. Also, Microsoft is putting a lot of emphasis on real-time collaboration, and different users can now edit documents simultaneously. Alhough Numote emphasized that all edits can be reversed.

Numoto also stressed the Office team focused on improving some of the most often used features. As an example, he told us that cut and paste is obviously one of the most popular features in Office, but that Microsoft found that after pasting something into a document, the key that was used the most often afterward was 'delete.' In order to improve the cut and paste process, Office will now feature a 'cut and paste preview,' similar to the feature that Office 2007 already offers for changing styles and fonts, for example.

Outlook aficionados will also be happy to hear that the email client will now feature an option to 'ignore' unwanted threads.

While the Technical Preview, which was announced today, will only be available for a limited number of users, the beta program will be open to everybody. Microsoft expects to ship the final version of Office 2010 in the first half of 2010.

So far, we haven't had a chance to actually test-drive the desktop or web apps ourselves, but you can expect an in-depth review from us once we get access to the beta.

In saying that, you may think we're overlooking Office Live Workspace, Microsoft's own web-based service for storing and sharing documents with family, friends, or colleagues. After all, it does come with its own plugin for the Microsoft Office software which allows you to both open and save documents to and from your online workspace.

However, while both Google Docs and Office Live provide online storage and easy ways to share files, Google Docs has Office Live beat when it comes to collaboration, a key reason for the service's popularity. Where Office Live uses SharedView for screen sharing a document with another user in real-time, Google Docs allows multiple users to collaborate in real-time without the need for desktop software. Google's service can even alert you via email notifications when changes have been made. Microsoft's soon-to-arrive "Office Web Applications" may end up giving Google Docs a run for their money (especially considering it will work on the iPhone), but at the moment, Google Docs is the better choice for real-time collaboration.

Why OffiSync?

The only problem with Google Docs is that, in some people's opinion, it's just not as good as Microsoft Office software. Of course, that's an entirely subjective statement - you may or may not agree (In fact, it's likely you don't, given that you're reading a blog about web apps and web technology). Still, there's a large user base of folks who launch Office every day instead of a browser, and it's for those people that OffiSync was designed.

Test Drive

Through a simple Office plugin, you're provided with a new menu seamlessly integrated into either your Microsoft Office 2003 or 2007 software.

From the menu, you can open, save, search, email, and more, as you can see from the image above. In this case, "open" and "save" refers to opening and saving to and from Google Docs, not your PC.

Saving Files

Our one complaint involves the "Save" and "Save As" options. When we opened an Office document that was saved only on our PC, and went to upload it (save it) to Google Docs, neither "Save" nor "Save As" defaulted the title of the doc to what it was already named. Instead, it displayed "untitled." This is obviously only a minor issue, but one that becomes an annoyance if you use OffiSync to upload a lot of previously local-only files to the Google Docs service.

Browsing & Interacting with Google Docs

Using either the Save or Open menu options, you'll be presented with a dialog box which has tabs for both browsing and searching your Google Docs. There's even a drop-down box that lets you switch between multiple Google accounts if necessary.

We were surprised that you could even interact with the Google Docs service from within this dialog box. For example, a right-click on any folder gave us options to create a new folder, delete the folder, or refresh. This was especially handy as we began to upload and organize our local stash of files. You can also drag-and-drop files from one folder to another.

Searching

The search feature also worked really well, searching not only document titles, but also within the documents themselves. However, if you're looking for a document title using partial text, you'll need to use an asterisk (*) in order for the search feature to locate your file.

Collaborating

With the plugin, you can invite collaborators or modify their permissions. In a dialog box, you simply enter their email address, assign read or write permissions, then click "Save." You can then choose to write a short message and configure your notification options. It's just as easy as using the Google Docs service itself.

At the moment, in order to see real-time edits, you still have to use the Google Docs service in the browser. However, OffiSync creator, Oudi Antebi, is working on a feature that will let users see updates in real-time as two or more people open the file in Office.

Conclusion

The OffiSync software is shaping up to become a must-have add-on for anyone who can't part with their Office installation but wants to enjoy the features of Google's cloud-based service. It may even provide some competition for the upcoming Office Web Applications...if OffiSync ever expands beyond Word, Excel and PowerPoint, that is.

Antebi plans to keep OffiSync free for consumers but charge for the enterprise version, which will be available later this year. It's hard to say if that's the right strategy - after all, we're consumers and we'd be willing to pay for this plugin - it's that good. But given Microsoft's plans to debut their own Office web apps later this year, Antebi may have no other choice but to keep it free for consumers in order to stay competitive.

We just hope that OffiSync doesn't end up with the same fate as that other Google Docs/local docs sync service DocSyncer - they didn't make it. But, we think there's a chance that OffiSync will be able to thrive where that service did not thanks to Antebi's plans to integrate even more Google Services (like Google Maps) into the software in the future. That alone, could give it a unique selling point that no one else provides. He also plans on making the search feature more robust, giving users smart filters to find the files based on metadata (names of collaborators, file type, size, location, etc.). That, too, will be a useful feature - especially as more and more of our documents are transitioned to Google's web-based service.

If you want to try OffiSync for yourself, you can. The download is now available for everyone from the OffiSync web site.

DocVerse currently consists of a 1 MB Office 2007 plug-in that gives Microsoft's desktop software new collaboration and synchronization abilities. Once installed, every time you hit the "save" button in Office, a web version stored online is automatically updated, too. The web version also comes with a link you can share.

If that part sounds a lot like what's already available in Microsoft's Live Workspace, that's because it is. Like DocVerse, Live Workspace users can also install a plugin into Office that keeps files between computer and web in sync.

However, the key difference between DocVerse and any of Microsoft's current offerings is the service's online collaboration abilities. With DocVerse, a group editing feature lets multiple users edit one copy of the same document without having to check it out, then check it back in.

To begin using the software, you can share a document with others using either the URL provided or by entering in the email addresses of those you want to share with. As changes are made, they're synced back to the online version of the document. The DocVerse software then uses a confliction resolution system to deal with any potential conflicts between the updates. As the edits continue, DocVerse automatically creates new versions of the document while saving the older versions in case you need to revert back.

DocVerse users will also see their changes categorized in an in-file "News Feed" which appears in the sidebar of any open document. For users without Office, feedback can be given about the shared files straight from their web browser.

At launch time, the plug-in works with Microsoft PowerPoint 2007 only, but support for Word and Excel 2007 will roll out later this spring as will support for Office 2003. DocVerse is Windows-only.

Some Questions

Microsoft announced the upcoming Microsoft Office Web applications at their Professional Developers Conference in October. With these web applications, due in the next version of Office (Office 14), users will be able to create, edit, and collaborate on Office documents through the browser (IE, Firefox, or Safari). Despite some initial rumors, Office Web Applications will not require Silverlight to run and they'll even  work on the iPhone via the Safari browser.

That obviously made us wonder - how will DocVerse compete with Microsoft's own offering? Says DocVerse CEO Shan Shina, the key will be backward compatibility. Where the official Microsoft Office Web Applications will focus only on the latest and greatest version of Office (he presumes - no one really knows), DocVerse will aim to be compatible with Office 2003, 2007, and the upcoming Office 14. Given that 35-40 percent of the market still runs Office 2003 and 15-20 percent runs 2007, he imagines it will be a while before everyone upgrades to Office 14 - web apps or not.

While capitalizing on the "good enough" trend, the company will also focus on how they can best complement the newer Office 14 when it becomes available. In other words, no matter what Microsoft throws out there, DocVerse plans to provide the missing features.

Try it! (Invites)

To learn more about how DocVerse works, Web Worker Daily has a great hands-on review. Our readers can try DocVerse for themselves by clicking here: http://www.docverse.com?ic=RWW. There are only 200 invites available, so that link is first come, first serve.

Disclosure: Sarah Perez also writes for Microsoft's Channel 10.

However, it's unknown at this time if the iPhone version of the Documents To Go application will function exactly the same as its predecessors. The company would not confirm anything else beyond the fact that they are indeed working working on an application and that they expect it to be available in early 2009.

iPhone Edges Closer To Business Use

Surprisingly, the competition for the Documents To Go iPhone app may come from Microsoft themselves, who confirmed at this week's PDC event that their new Office Web Applications suite will be available as a technical preview by year end. According to Microsoft, Office Web apps will work in IE, Firefox, and Safari browsers. We're hoping that means iPhone's Safari browser, but we won't know until testing begins.

Until then, something like a Documents To Go iPhone app could push the iPhone even closer to enterprise adoption, especially considering that the phone now works with Microsoft Exchange Server. Currently, Office files arriving as email attachments can be viewed on the iPhone, but making changes to those files is not possible. Providing editing tools may be the final step towards getting the iPhone past the barriers of I.T., where there are still holdouts claiming the iPhone isn't a business-ready device.

You can sign up here to be notified when this app becomes available.

Enter the dark horse Google Apps - the new platform for day-to-day business operations in DC - now that Vivek Kundra, Chief Technology Officer for the District of Columbia, has decided to switch the District's 38,000 employees from the installed Microsoft Office suite to the Web-based Google suite.

While this change won't be taking place in the Oval Office, it's still worth noting. The win marks a big step forward for Google Apps, which a little over a year ago, was still a viable target for Microsoft finger-wagging campaigns, decrying Google Apps' viability.

That view is definitely changing.

Earlier this year, Bernard Lunn hypothesized that Google Apps had become a true threat to Microsoft Office:

"Solid economic engine, good on collaboration/mobile, increasingly mature/ready for prime time...Yes, Google Docs looks like a major winner."

And this move by the DC CTO seems to validate that hypothesis.

With "belt tightening" on everyone's lips, the decision to move from the entrenched Microsoft offering to a more affordable solution could draw attention - especially given Kundra's focus on delivering more technological power at a lower cost:

"When I moved to Washington, I had more computing power on my laptop at the local coffee shop than the average police officer or teacher. We looked at the cloud computing model and the consumer space. Compared with the cost of owning infrastructure, it's far cheaper."

Granted, one Google win over Microsoft doesn't necessarily signal a trend. But the win is significant for Google, nonetheless. It becomes even more noteworthy considering that the customer is a local government, a market which has traditionally been slow to embrace the latest technologies.

If DC's willingness to abandon Microsoft Office indicates that Google Apps' user base has truly moved beyond bleeding-edge adopters, this could mark the beginning of a very interesting trend.

So are ReadWriteWeb readers, many of whom are early adopters of Internet technology, using online word processing services now instead of desktop software? Er, no.

Less Than 1/4 of You Use an Online Word Processer as Your Main Tool

Let's delve further into the results, firstly for the desktop software. Last year MS Word got 46% and this year 48%. So not much has changed for the dominant office software supplier, even with RWW's Net savvy readers. OpenOffice slipped a bit, down from 17% last year to 15% this year. Overall, 76% of readers still use a desktop software program as their main word processing tool (counting the 8% who use a text editor for this purpose). That's up slightly from 74% the same time last year.

That means that less than 25% of our readers use an online service as their primary means of doing word processing. The best of the online breed was Google Docs, with 17%, up from 11%. This is a good sign though, because Google Docs is now second behind only MS Word.

Google Docs Gains Users, But Not From Microsoft

What was a little surprising is that the Web startups competing with Google Docs all performed worse than last year. ThinkFree got 2%, Buzzword 1%, Zoho 1%, and Zimbra less than 1%. ThinkFree and Zoho both polled at 5% last year and Zimbra 2% (Buzzword wasn't in last year's poll). This indicates that Google Docs has gained users not from MS Word... but from the online startups.

Tell us your reaction to these results. What's happened to the startups? Are they doomed in this market dominated by the big guns?

The problem with spreadsheets that their system is trying to address has to do with those who need to derive data from multiple spreadsheets (two or more). Although it's easy enough to perform sorts, build macros, and create formulas within one spreadsheet, when needing to compare values in multiple spreadsheets the process becomes more difficult.

The company's app, The Semantic Discovery System for Excel, or just SDS for short, will look for similar columns or rows between the sheets and then "semantically" connects them. They don't appear to just be throwing that term around either - the app uses the same W3C Semantic Web technologies (RDF, OWL, SPARQL) to help you capture "meaning, intelligence, and knowledge" from the data saved in your spreadsheets.

Do We Need Semantic Desktop Apps?

Does SDS solve a business problem that is not yet being addressed through current technologies? In my experience, the short answer to this question is "no." (But wait, there's more...)

Typically, when a business has need of comparing and analyzing large amounts of data, the solution is to turn to a database product that can then be queried and from which custom reports can be pulled. And a business doesn't need to spend a lot of money on a robust solution to do so - even a smaller business can create a database by using inexpensive desktop software.

However, the difference between using a database technology and "semantically connecting" some spreadsheets comes down to for whom this product is being built. In the past, databases and other business intelligence apps were built as if the creators knew that the only person using them would be an I.T. guy or gal. SDS, instead, aims to satisfy the needs of the non-technical end user.

Is this another example of tech populism at work? It certainly looks like it. Yet, in this case their market is small - a non-technical user who's also a power user with Excel? There's usually some overlap there. Not to mention, by the time you've achieved "power user" status, you've often also figured out how to do more complicated things in Excel...like, say, formulas that work across spreadsheets, for example - the very pain points this app is trying to address.

Still, it's an interesting concept to think of taking the semantic web capabilities and integrating them into everyday programs to add a layer of intelligence to these programs as well. Done correctly, it could improve the capabilities of our favorite software apps without making the programs overly complex, which is what typically happens when you add more features.

What do you think? Is the Semantic Desktop (that is, semantically-enabled desktop apps) right around the corner? Or is this product and those like it too niche to find an audience? Let us know what you think in the comments.

Also, with the addition of the SharePoint connector, Microsoft's well-known collaboration and document sharing platform gets a big dose of Enterprise 2.0 goodness, which is sure to please the end users. However, Confluence makes I.T. happy too, thanks to their inclusion of tools - like LDAP integration and administratively controlled permissions - that are designed just for the needs of the enterprise.

The Confluence Office Connector provides seamless integration between their enterprise wiki and Microsoft Office. Users can now edit the wiki in Microsoft Word...and even Microsoft Excel or PowerPoint, too. The experience for the end user is intuitive; they simply open a document, make a change, and click "Save" just like they already know how to do. There's no big learning curve here which means users are more likely to adopt the technology instead of relying on their old methods of managing and sharing files. And since those older methods are likely to have been either via network file shares or as inbox-clogging emails, the Confluence solution can help I.T. transition everyone to SharePoint while also helping in the fight against email overload.

With the Connector deployed within Team Sites, wiki editing is finally easy and that alone make it a vast improvement upon the wiki that's provided with SharePoint out of the box.

SharePoint Connector

Originally released in beta form to a limited number of testers back in 2007, today Confluence's SharePoint Connector is officially available to everyone. Although the company offers a hosted solution as well, most I.T. departments are more likely to integrate the Confluence deployable software with SharePoint server instead (or other systems via the API) to build upon the solutions they already use in house.

The companies that have already adopted Confluence include several big names that you're sure to have heard of: Bank of America, Sun, Adobe, Cisco, IBM, SAP, Intel, Seagate, E*Trade, Citigroup, Microsoft, EMC - the list goes on and on, a veritable "who's who" of the world's top enterprises. In total, there are over 6000 enterprises currently using Confluence today, yet the pricing still makes it easy enough for even smaller companies to consider the software, with solutions that begin at $1200 for 25 users (or $600 for academic institutions.)

Learn More

To learn more about the new Office Connector and see it action, check out this video from Atlassian:

Microsoft Online Services is scheduled to be released out of beta at some point in the second half of 2008.

The Deskless Worker Suite, as Mary Jo Foley notes, seems to be geared towards users who might otherwise be tempted to move to Google Docs or Zoho's online office suite. Microsoft is aiming this product at workers who only spend a small part of their days at a computer, but still need access to email and and other basic online services.

As Microsoft is moving more and more services into the cloud, the big question of when (and if) Microsoft will start offering the core components of its office suite like Word and Excel online as well, still remains. For now, Microsoft seems content to offer products like Office Live Workspace that provides online storage in the cloud, but as pressure from Google and others increases, Microsoft will surely have to counter these offerings with a more fully featured web based office suite.

UPDATE: Jrome, your email address had an error, so please contact us at tips@readwriteweb.com to claim your prize.

"Hey Sarah,
If you want to focus on "everyman" features, why not to highlight the awesome GoogleLookUp function?

Here are the few steps:
1. Create a Google Spreadsheet
2. Tape "bmw" in A2, "mercedes" in A3 and "nissan" in A4
3. Select A2:A4 and, while holdind the Ctrl key, expand your selection until A50.
4. Say "wow"
5. Tape "employees" from B2 to B50.
6. Enter "=googlelookup(A2; B2)" in C2 and expand the formula until C50
7. "wow", again

Here are some of the types of entities you can access using GoogleLookup, and a few popular attribute names:

Countries and Territories (like "Burkina Faso"): population, capital, largest city, gdp
U.S. States (like "Tennessee"): area, governor, nickname, flower
Rivers (like "Amazon River"): origin, length
Cities and Towns (like "Chicago"): state, mayor, elevation
Musicians (like "John Lennon"): date of birth, place of birth, nationality
Actors (like "Audrey Hepburn"): date of birth, place of birth, nationality
Politicians (like "Anwar Al-Sadat"): date of birth, place of birth, nationality
U.S. Presidents (like "Zachary Taylor"): date of birth, place of birth, political party
Baseball Players (like "Wade Boggs"): games, at bats, earned run average, position
Chemical Elements (like "Helium"): atomic number, discovered by, atomic weight
Chemical Compounds (like "Isopropyl Alcohol"): chemical formula, melting point, boiling point, density
Stars (like "Betelgeuse"): constellation, distance, mass, temperature
Planets (like "Saturn"): number of moons, length of day, distance from sun, atmosphere
Dinosaurs (like "Velociraptor"): height, weight, when it lived
Ships (like "USS Chesapeake"): length, displacement, complement, commissioned
Companies (like "Hewlett-Packard"): employees, ceo, ticker

9. Take a look at other Google functions in the "Google" tab of this page: http://documents.google.com/support/spreadsheets/bin/answer.py?answer=82712&ctx=
10. "wow", again and again

These are the reasons why web-based apps are far more superior than desktop-based ones. And with more and more microformats, I bet this funtion will definitely improve the way we organize information. That could make a pretty corporate goal ;-)"

Before we review the features in detail, let's look at an overview of what Office Live Workspace offers.

After signing up for Office Live and signing into the service (and no, you don't have to have an MSN email address to do so), you are presented with the "Documents" area where you can upload and view files and share them with others.

However, the defining feature is of this service are the "workspaces." The "My Workspaces" section is to the left of the main window. You can create a new workspace by clicking on the plus button next to "New Workspace."

You can start with a blank workspace or choose one of the workspace templates provided. These templates include things like "Class Workspace," "Event Workspace," "Household Workspace," "Job Search Workspace," and more. Loading one of these templates populates the Workspace with some sample documents. For example, the "Job Search Workspace" comes pre-loaded with documents like a resume, a cover letter, an interview schedule, interview preparation notes, etc.

Files can't be edited from within workspace, but clicking on "edit" will open them up in Microsoft Office (of course). Individual documents or entire workspaces can be shared with others. Using the provided Office plug-in allows for one-click access from the desktop software to the workspace.

The workspace doesn't offer offline collaboration - instead documents are "checked out" and "checked in," but the service does integrate with SharedView for real-time screen sharing.

Feature-by-Feature Comparison

Both Google Docs and Office Live Workspace are free services, but each has its own unique set of features.

Storage Space

Microsoft Office Live Workspace is limited to 500 MB of space, which equates to about 1000 Microsoft Office documents.

I found it hard to pin down Google Docs storage space. Going into the basic information section of docs.google.com, I found two sentences stating: "Each user has a combined limit of 5000 documents and presentations and 5000 images," and "Each user has a limit of 1000 spreadsheets." However, an actual quota in MB was not specified.

File Types

Google Docs is limited to the types of files their service allows you to edit online: HTML, .txt, .doc .rtf, .odt, .xls, .csv, .ods, .tsv, .tsb, .ppt, and .pps.

Office Live Workspace allows you to upload all kinds of files, not only Office document file types. So, in addition, you can upload .PDFs, pictures, or seemingly any kind of file except those on the blocked list, which are blocked to protect users as they are file types Windows sees as executable files.

File Sizes

Google Docs allows for documents of 500 K each, plus up to 2 MB per embedded image. Presentations can be 10 MB in size. Spreadsheets can be 10,000 rows, or up to 256 columns, or up to 100,000 cells, or up to 40 sheets - whichever limit is reached first. Each spreadsheet can have up to 20,000 cells with formulas.

Regardless of the file type, Office Live Workspace allows for individual files as large as 25 MB.

Sharing

Google Docs allows for sharing of a file or files by checking the checkbox next to them and clicking "share" from the menu. Those you are sharing with can be invited as "Collaborators" or "Viewers." You can add a short note along with the invitation. Documents and presentations can be shared with 200 combined viewers, but spreadsheets have no limit.

Similarly, Office Live Workspace allows you to share documents or workspaces with others and mark them as "editors" or "viewers". You can add a note along with the message. You can also check a box to allow "everyone to view this without signing in," and/or a box to "send me a copy of the sharing invitation." Below, a read-only preview of the file is displayed. Files or workspaces can be shared with up to 100 people.

Both offer address book integration for finding recipients' email addresses.

Collaboration

In Google Docs, collaborators have the ability to work on files together, in-real time. Ten people may edit and/or view a document or presentation at any given time. Fifty people can edit a spreadsheet at the same time.

Although Office Live Workspace allows for collaboration, it's not real-time, online collaboration. Instead, if one user is editing a file, another will be informed the file is "checked out." When they finish editing and save their changes the document is checked back in for other users to access.

Versioning

Both Google Docs and Office Live Workspace keep track of older versions of a file. You can use the web interface of either to roll back to a previous copy.

Batch Uploads

Google Docs allows you to browse for a file on your computer and upload it to the service, one-by-one. Documents and presentations can be emailed in, but not spreadsheets. In January, Google released a Document List Uploader tool that provides drag-and-drop uploads to the service. Third party tools like DocSyncer can automatically upload your documents from your PC to Google Docs.

Office Live Workspace also allows for Batch Upload, but if you're not using IE, you won't see the option. IE users can click on "Add Document" and they will be presented with the option to upload a single document or multiple documents.

Integration

Google Docs is the whole offering - there is no offline software to use, but if you needed to edit files with offline software, like Microsoft Office or Open Office, because you hit a wall with Google Docs' current abilities, you could do so by downloading the file to your PC.

However, since Office Live Workspace is the web-enabled aspect of Microsoft Office software, integration is key. From within the workspace, you can click "edit" to open the file with the Microsoft Office program. The service also offers an add-in that works with Office XP, 2003, or 2007. The add-in allows you to open and save documents to and from the workspace via the software's File Menu (XP, 2003) or Office menu (2007).

Direct URLs

Both Google Docs and Office Live Workspace offer direct links to allow you to bookmark your workspace or a workspace item (Microsoft) or a file (Google Docs) via a unique URL you can save or share with others.

Folders

Google Docs allows for folders and sub-folders to store your files.

Essentially, Office Live Workspace offers folders, too, if you consider that each "workspace" is basically a folder containing files you want to group together. You can name these anything you want, but sub-folders within them are not supported.

Saving/Exporting

Google Docs allows you to save files to your computer by saving them into (depending on their original format) a Microsoft Office, Open Office, HTML, txt, or even PDF format. You choose the format you want from the menu.

Office Live Workspace of course assumes you want to save the file in Microsoft Office format or whatever other format the file is already in (ex. PDF).

Mobile Access

Google Docs are available from any mobile device, but editing is not available.

Office Live Workspace doesn't provide mobile access, unless you're a member of the Live@edu program. The Live@edu program offers students and alumni 5 GB email inboxes, 5 GB of password-protected online storage space, shared calendars, blogging tools, and access to these services on a mobile phone, all at no cost to the schools or students.

Other Features

Google Docs

• You can create a form in a Google Docs spreadsheet and send it out to anyone with an email address. They can respond directly from the email message or from an automatically generated web page and their responses are automatically added to your spreadsheet.

Office Live Workspace

• Office Live Workspace offers some nice features, such as the ability to comment on files stored on the service.
• Also, an "Activities" feature keeps track of workplace activities with the new activity panel and can send you notifications when changes are made in the workspace.
• Integration with SharedView beta allows Office Live Workspace users to share screens with each other in real-time.

Conclusion

Although it's very close when it comes to basic features of the two services, each stands out in its own way. Google Docs, although limited in its capabilities, offers real-time collaboration. Office Live Workspace, on the other hand, may not have the collaboration features of Google Docs, but the workspaces feature is unique. Plus, you have the capabilities of full-featured Office software available (assuming you own it)!

So, what do you think? Is Office Live Workspace a Google Docs killer? Or just a worthy competitor? Or is Google Docs the big winner?

"Open a Google doc. Paste an image. Oh, that's right, you can't Ctrl-C copy, Ctrl-V PASTE an image into a document. Ok, so INSERT an image. Now proportionally resize the image so it retains its aspect ratio. Oh, that's right, you can't. Now crop the image. Oh that's right, you can't.

Now insert a table. Now grab the edge of a column and resize the column. Oh wait, you can't. Now delete one of the columns. Oh wait, you can't.

Now type some text and select it. Choose one of the fonts on your computer instead of the six fonts Google licensed from Microsoft. Oh wait, you can't. Create a new paragraph style. Oh wait, you can't. Change the font color and background on some text. Now copy that formatting to another paragraph. Oh wait, you can't.

Now do a find and replace on some text. Hmmm, why is that feature marked as "experimental?" Oh, because you don't get to choose which instances get replaced, it just replaces all of them. And there's no way to undo afterwards.

People just love to use software where some incredibly basic feature like "search & replace" is marked with "WARNING! EXPERIMENTAL! Use eye protection! This could blow up in your face!"

I'm sure Google docs works for you and your needs, but for very basic stuff, Google docs is chock full of FAIL.

You "assume" the Spreadsheet product will be "ready for prime time pretty soon," but do not tell us why you think so. Do Google products usually come flying out of beta?

You tell us it's all gonna be great when Google Gears finally kicks in and you can work without an Internet connection, then you point to a review where the guys says, yeah, they enabled "experimental" offline use, but, uh, you can't actually edit documents offline. I assume this will also be done "pretty soon?"

Then you gush about how Google Docs is a "platform" -- don't you remember Microsoft Word is too? Do you not remember macro viruses? When malware authors realize they too "can plug into Google Docs as if they owned it" then there's a chance they're gonna 0wn you.

You talk about being able to view Google Docs on your Blackberry, when mobile device support for Microsoft Word documents is already pretty commonplace.

Finally you tell us that "Google will win this battle" is because "they have the economic engine," meaning, they have advertising in all their stuff. Yay capitalism. I know the last six times I used a word processor, I kept thinking it needed more advertising.

You undermine your own argument by adding that you assume you "can always opt to pay a subscription and be ad free." LOL! Order now and get a free set of steak knives? Now how much would you pay? But wait, there's more....

The irony is you could go out right now, and get a whole Microsoft Office suite (Word, Excel, Powerpoint, OneNote) for $120 at Newegg, and you can install it on three different computers. And it works great and has tons more features than Google Docs. And it has no ads. Imagine that!

$120 / 3 computers = $40 per computer. Assuming you upgrade every 3 years, that's about $1.12 per PC per month for the MS Office suite. Why would I spend THAT kind of crazy money for software I use day-in, day-out when I can bang my head "for free" against the lame "experimental" features of Google Docs?

You started off your post saying "MS Office can be annoying, but it does work." By "be annoying," I assume you mean "cost money." I mean, you'll get around to coughing up $25 for RTM someday, right?

You said "If I want to persuade with words, I use words." Next time maybe you should try different words. :-)"

I think Google Apps has reached that point. The significant advantage is collaboration.

The lead product in Google Apps for me is their word processing product - i.e. the MS Word alternative. That may be because I am a wordsmith, but also because it is the most mature. I still use Excel, as Google Spreadsheet is both a pain to learn and not good enough for power users. Also there are better ways to collaborate with Excel, such as eXpresso. I don’t use Google Presentation, but that is because I am weaning myself off Powerpoint - as I think it is no longer the best presentation medium. If I want to persuade with words, I use words. If I want to persuade with multimedia, then it is time for video such as YouTube or maybe Seesmic and screencasting tools to show off an app. A PPT deck is very flat by contrast.

Google was very smart to take a loosely coupled approach. So I can use Document and ignore the others. I assume that the Spreadsheet product will be ready for prime time pretty soon. Google may buy/build services that make video plus screencasting plus a bit of standard presentation stuff a breeze for everyone. But until then, I can use Gmail and Documents and gradually get enticed into the other stuff.

The one big missing piece has been offline access. It was clear that Gears would enable this at some stage. It now appears that is not so far away. That will be a major driver for me to standardize more on Gmail; currently I split between Gmail and Outlook; and that is a pain to manage.

Not only is Google miles ahead of MS on collaboration, they have moved ahead on mobile access. I have long believed that mobile would be a key driver for Web Office. Now I can get access to my Docs from my Blackberry. When I switch to an iPhone with that bigger screen, I will be able to say “sayonara” to my laptop even more. In that world, MS Office looks like a real dinosaur.

The latest aha moment for me came when I started using Remember The Milk. I was very skeptical at first. The last thing I needed was the distraction of learning another way of managing to do lists; first to do, learn new way to list to do items, grrr! When I saw RTM load into Gmail as a sidebar I warmed. Then I saw that RTM was very mobile friendly and I was sold (well took the free version at any rate, I do feel I should send that $25 for Pro as Bob T. Monkey is clearly an amazing developer and a huge inspiration to coder-monkeys everywhere).

Seriously, the point is that Google Docs is a platform. The two smart people in Australia (Ed, what is it about you guys in the Southern Hemisphere?) who created RTM can plug into Docs as if they owned it.

The other platform out there for wordsmiths is Wordpress. It's free, open source, has a plug-in architecture and there is a Dummies book about the software (a sure sign of market traction). So the looming real battle is maybe Google Docs/Blogger versus Wordpress. Or, Mozilla Thunderbird versus Gmail. Microsoft really does look like they have the classic “Innovator’s Dilemma“. I thought that Ray Ozzie’s mission was to cannibalize Office before somebody else did it; if that is the play, they are leaving it a bit late!

There is one other reason why Google will win this battle. They have the economic engine. I am not just talking about cross subsidization from their search engine cash cow; Google do that just like Microsoft did it from their Windows/Office cash cow. What is interesting is that Google has figured out how to make ads in Gmail at least vaguely relevant. Sure there is some dumb stuff there, but quite a few that are relevant. The point is that the search engine has more to work on, all of my text and not just my search query. Our expectations on search are so low, that just “not totally dumb and occasionally slightly relevant” gets a cheer. I have actually clicked on a Gmail ad.

They can clearly also insert ads in Docs. Do I care? It is a bit spooky, but as long as Google really takes the high road on privacy, I have the freedom to ignore and I may occasionally even find something useful. I assume I can always opt to pay a subscription and be ad free.

Solid economic engine, good on collaboration/mobile, increasingly mature/ready for prime time…Yes, Google Docs looks like a major winner.